TSX Today: Why Canadian Stocks Could Fall on Tuesday, January 31

Despite the expected weakness in stocks today, the TSX index is on track to end the first month of 2023 on a solid note.

tsx today

The Canadian equities market started the new week on a negative note after rallying for four consecutive weeks. The S&P/TSX Composite Index fell by 142 points, or 0.7%, to settle at 20,572, marking its biggest single-day losses in over a month.

While all main Canadian stock market sectors ended the session in the red, big losses in the shares of healthcare and technology companies primarily led the TSX index downward. In addition, sharp declines in copper and West Texas Intermediate crude oil futures prices kept metal mining and energy stocks under pressure.

Top TSX Composite movers and active stocks

Westshore Terminals, Peyto Exploration & Development, Bausch Health Companies, Shopify, and Lightspeed Commerce were the worst-performing TSX stocks yesterday, as they fell by at least 5% each.

On the positive side, Algoma Steel Group, Athabasca Oil, Fairfax Financial Holdings, and Denison Mines rose by at least 2.6% each, making them the top performers on the Toronto Stock Exchange for the day.

Based on their daily trade volume, Manulife Financial, Toronto-Dominion Bank, Athabasca Oil, and Enbridge were the most active stocks on the exchange.

TSX today

The main TSX index may extend weakness at the open today as commodity prices across the board were trading on a bearish note early Tuesday morning, which could pressure energy and mining shares further. Despite the expected weakness in stocks today, the TSX benchmark is set to end the first month of 2023 on a strong note, as it has already risen by 6.1% in January so far.

Statistics Canada is expected to release domestic monthly gross domestic product for November this morning. Besides that, Canadian investors may also want to keep a close eye on the latest consumer confidence data from the U.S. market.

On the corporate events front, Canadian energy company Imperial Oil and the transportation giant Canadian Pacific Railway will announce their latest quarterly financial results on January 31. Imperial Oil is expected to report $2.56 per share in December quarter earnings, reflecting about 90% year-over-year growth. Similarly, Street analysts expect Canadian Pacific’s fourth-quarter earnings to rise 12.8% from a year ago to $1.07 per share.

Market movers on the TSX today

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has positions in and recommends Fairfax Financial and Shopify. The Motley Fool recommends Canadian Pacific Railway, Enbridge, Lightspeed Commerce, and Westshore Terminals Investment Corporation. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Energy Stocks

sale discount best price
Energy Stocks

Time to Pounce: 1 Phenomenal TSX Stock That Hasn’t Been This Cheap in a While

Now could be the time to get into Cameco (TSX:CCO) stock, which is up 81% in the last year but…

Read more »

Oil industry worker works in oilfield
Energy Stocks

Want Decades of Passive Income? 2 Energy Stocks to Buy Now and Hold Forever

These energy stocks offer attractive passive income and plenty of long-term growth potential, making them two of the best to…

Read more »

pipe metal texture inside
Energy Stocks

Should You Load Up on Enbridge Stock?

Enbridge stock remains undervalued despite its predictable, low-risk cash flows and strong dividend growth.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Brookfield Renewable vs. NextEra Energy: Which Clean Energy Stock Is a Better Buy?

Clean energy giants such as NextEra Energy and Brookfield Renewable are top long-term investment options in 2024.

Read more »

Gas pipelines
Energy Stocks

Buy, Sell, or Hold Enbridge Stock

Are you considering Enbridge (TSX:ENB)? Enbridge stock is a popular holding, but not all investors agree on whether you should…

Read more »

Burning gas and electric cooker rings
Energy Stocks

With Natural Gas in Demand, 2 TSX Stocks Are Set to Heat Up

Natural gas stocks such as Tourmaline will see their fortunes rise as natural gas demand and prices rise.

Read more »

Gas pipelines
Stocks for Beginners

3 Reasons to Buy Enbridge Stock Like There’s No Tomorrow

Enbridge (TSX:ENB) is a superb long-term option. Here's why you should buy Enbridge stock right now and hold it for…

Read more »

potted green plant grows up in arrow shape
Energy Stocks

1 Ridiculously Undervalued Growth Stock Down 40% to Buy Hand Over Fist

Don’t miss your chance to load up on this high-yielding, renewable energy growth stock.

Read more »